Microsoft add PayPal payments to Xbox 360

As a part of a new Xbox 360 System Update, Microsoft are expanding their integration with PayPal to allow U.S. and international Xbox LIVE users to make purchases on their Xbox 360 consoles with their PayPal accounts. Once you’ve linked your PayPal account to your Xbox LIVE account on Xbox.com, you’ll be off and running to use it as a billing option, allowing you to buy content such as Microsoft Points, Xbox LIVE Gold subscriptions and Games on Demand titles.

The Xbox 360 System Update will be rolled out gradually to all Xbox LIVE users starting today, you will know you’ve received it when you turn on your Xbox 360 console, connect to Xbox LIVE and receive a notification to download the update. It’s important to note that it may take a few days to make its way around the world.

PayPal say that according to an Ispos study from March of this year, nearly 75% of people who identify themselves as gamers also have PayPal accounts. That should mean a bump in payment processing for PayPal as it’s far easier to click and pay with PayPal than to hunt for a debit or credit card when hunched over your games console.